US economy grew at 3.1 percent in summer

The U.S. economy grew at an annual rate of 3.1 percent over the summer as consumers spent more and state and local governments added to growth for the first time in nearly three years. But the economy is likely slowing in the current quarter.

The Commerce Department‘s third and final estimate of growth for the July-September quarter was revised up from its estimate a month ago of a 2.7 percent annual rate.

The third-quarter growth was more than double the 1.3 percent growth rate in the April-June quarter. But disruptions from Superstorm Sandy and uncertainty weighing on consumers and businesses from the “fiscal cliff” are likely holding back growth in the October-December quarter. Many analysts predict an annual growth rate of just 1.5 percent for this quarter.